- IRS agent testifies Roman Storm had control over funds linked to Tornado Cash smart contracts.
- Defense challenges tracing evidence and signals possible mistrial.
- Prosecutors aim to close their case, with Storm’s defense set to begin Thursday afternoon.
The eighth day of the criminal trial against Roman Storm, co-founder of crypto mixing platform Tornado Cash, focused on the pivotal issue of whether Storm had control over funds processed by the platform. Testimony from an Internal Revenue Service (IRS) special agent suggested that Storm maintained influence over transactions routed through Tornado Cash, including some from Binance and Crypto.com.
According to reporting by Inner City Press, IRS Criminal Investigation Special Agent Stephan George presented findings from his forensic review. George testified that Storm had “control” of funds transferred from a Binance-linked account to Tornado Cash’s smart contracts. His conclusion was based on private communications between Storm and his co-founders, Alexey Pertsev and Roman Semenov.
Defense challenges tracing evidence and signals mistrial motion
Storm’s defense attorneys pushed back against the government’s line of argument, particularly questioning the testimony of Hanfeng Lin, an earlier witness who had claimed to be the victim of a romance scam. Lin testified that stolen crypto tied to his case was laundered via Tornado Cash.
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However, defense attorneys argued on Tuesday that follow-up analysis revealed no funds from Lin’s case actually flowed through Tornado Cash, undermining the claim. They further questioned Lin’s expertise, arguing that his accounting background did not qualify him to testify about complex crypto tracing or wallet attribution.
In a court filing, Storm’s legal team stated:
His background does not qualify him to attribute wallet control or trace criminal proceeds particularly where identification of account ownership is contested.
They also indicated a potential motion for mistrial, citing concerns that misleading or improperly admitted evidence could prejudice the jury.
‘Control’ debate central to money laundering allegations
At the heart of the case is whether Roman Storm could have restricted or deterred illicit use of Tornado Cash a tool frequently used to obscure cryptocurrency transaction trails. Prosecutors argue that Storm knowingly facilitated money laundering, operated an unlicensed money transmission business, and conspired to violate U.S. sanctions, particularly involving North Korean-linked hackers.
One government witness reportedly planned to testify on whether Storm had the technical ability to alter Tornado Cash’s functionality to disincentivize criminal use. However, the testimony instead focused more on how the service reacted to being sanctioned by the U.S. Treasury, rather than proving Storm could have modified it.
Prosecution to wrap, defense to begin presenting case
U.S. prosecutors said they expect to rest their case before lunch on Thursday, paving the way for the defense to begin calling its witnesses. Storm’s attorneys plan to call “two or three doctors” likely to discuss Storm’s health and are also considering bringing in an expert from Chainalysis, a leading crypto forensic firm.
Roman Storm faces three criminal charges:
- Conspiracy to commit money laundering
- Operating an unlicensed money transmitter
- Conspiring to violate sanctions
The outcome of the case could set precedent for developer liability in crypto and how U.S. authorities view control and accountability in decentralised finance protocols.
